Lebanon's interim Central Bank Governor Wassim Mansouri plans to implement changes in monetary policy aimed at stabilizing the country's financial situation.
"During the transition period, all expenditures for additional public funding will be legalized through parliament," he emphasized at a press conference in Beirut after assuming office. Lebanon's central bank will refrain from using foreign exchange reserves to lend to the government.
Mansouri announced his intention to implement a unified exchange rate for the national currency in coordination with the finance ministry. According to him, "this would entail determining the price of the dollar in Lebanese pounds based on market indicators; and freeing financial policy from political influence is essential to improve Lebanon's economic situation."
Wassim Mansouri succeeded 73-year-old Riad Salameh as Lebanon's Central Bank governor. Salameh had held the position since 1993. However, he currently faces legal troubles, with criminal cases filed against him in Belgium, Germany, Luxembourg, Monaco and France. He is accused of corruption offenses related to illicit enrichment.
As per the confessional structure of Lebanon, the post of the central bank governor traditionally belongs to a native of the Maronite Christian community, as noted by Samir Hammoud, former chairman of the Interbank Supervisory Commission, in a conversation with a TASS correspondent. However, with the post of the head of state vacant since October 31 last year, the appointment of Wassim Mansouri, a Shia Muslim and former first deputy to Salameh, is seen as temporary and in accordance with the constitution until a new president is elected.
IMF demands
The Lebanese pound has depreciated significantly against the US dollar, reaching 66 times its value since October 2019, due to the country's severe socio-economic crisis. According to a study by the UN World Food Program, around 1.3 million Lebanese and 700,000 Syrian refugees, which makes up a third of the country's population, are now living below the poverty line.
In response to the crisis, the Lebanese authorities have committed to meeting the demands of the International Monetary Fund (IMF). This includes conducting audits on the central bank and 14 major private banks. The IMF loan agreement also entails comprehensive reforms, such as restructuring the public debt, reforming the banking sector and tax system, reducing the state apparatus, and eliminating subsidies on major items.
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Based on materials from TASS